The Analytical Overview of the Main Currency Pairs on 2017.10.16

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.18298

Open: 1.18134

% chg. over the last day: -0.06

Day's range: 1.17806 – 1.18193

52 wk range: 1.0341 – 1.2069

On Friday, the United States published mixed economic reports. In September, the base consumer price index rose by 0.1%. Market expectations were at 0.2%. At the same time, the base retail sales index increased by 1.0%, which is higher than the forecasted value of 0.3%. At the moment the "bearish" sentiment is prevailing on EUR/USD. The price is testing the local support level of 1.17800. The mark 1.18250 acts as a "mirror" resistance.

The Economic calendar for 2017.10.16:

- The balance of trade of the Eurozone at 12:00 (GMT+3:00);

- The NY Empire State index of manufacturing activity at 15:30 (GMT+3:00).

Indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which signals a bearish sentiment on EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals the sales of EUR/USD.

Trading recommendations

Support levels: 1.17800, 1.17400

Resistance levels: 1.18250, 1.18750

If the price fixes below the local support of 1.17800, we recommend considering sales of EUR/USD. The target level of movement is 1.17400-1.17250. When following a position, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.32603

Open: 1.32929

% chg. over the last day: +0.19

Day's range: 1.32692 – 1.33117

52 wk range: 1.1450 – 1.3618

At the moment, there is an ambiguous technical pattern on GBP/USD. The trading instrument is consolidating. The key levels of support and resistance are still 1.32750 and 1.33250 respectively. It is recommended to open positions if the price fixes above/below these marks.

The news background on the UK economy is calm today.

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.32750, 1.32250

Resistance levels: 1.33250, 1.33750

If the price fixes above 1.33250, we recommend considering buying GBP/USD. The movement is tending to 1.33750-1.34000.

Alternative option. If the price fixes below 1.32750, we expect GBP/USD to fall. The target movement level is 1.32250.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.24738

Open: 1.24688

% chg. over the last day: -0.05

Day's range: 1.24643 – 1.24904

52 wk range: 1.2059 – 1.3795

The technical pattern on the USD/CAD currency pair is still ambiguous. The trading instrument continues to consolidate in a rather narrow range. At the moment, the price is testing the local resistance level of 1.24850. The nearest support is at around 1.24600. We recommend paying attention to the oil quotations dynamics. Positions must be opened from the key levels.

The news background on Canada's economy is calm.

The signals of the indicators are ambiguous. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the growth of the USD/CAD quotes.

Trading recommendations

Support levels: 1.24600, 1.24350

Resistance levels: 1.24850, 1.25250

If the price fixes above the local resistance of 1.24850, we recommend considering buying USD/CAD. The movement is tending to 1.25250.

Alternative option. If the USD/CAD rate overcomes the 1.24600 mark, it is necessary to search for entry points to open short positions. The target level of movement is to 1.24250-1.24000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 112.288

Open: 111.765

% chg. over the last day: -0.37

Day's range: 111.654 – 112.079

52 wk range: 99.53 – 118.67

The bearish sentiment prevails on the USD/JPY currency. At the moment, the price is testing the local support of 111.700. The round level of 112.000 is the nearest resistance. The trading instrument has the potential to further reduce. We recommend paying attention to the dynamics of the US government bonds yield.

The publication of important economic reports from Japan today is not planned.

The price has fixed below 50 MA and 200 MA, which signals the power of sellers.

The MACD histogram is located in the negative zone and continues to decline, indicating a drop in USD/JPY.

Stochastic Oscillator is close to the oversold zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 111.700, 111.250

Resistance levels: 112.000, 112.400

If the price fixes below the local support of 111.700, we recommend considering selling USD/JPY. The target movement level is 111.250-111.000. When tracking positions, one should use a trailing stop.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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